BHAVESH (Manager-Finance) (47 Points)
01 October 2009My mother is having a flat in her own single name.If she transfers the flat to my name through will and if I pay the amount as mutually agreed between the family members to my younger brother then will there be any tax liability on any one of us.Or is there any other way where we can transfer the flat to my name.
Bhavesh Thakker
Cell No 9320578884.
Debashis Mandal
(Business & Tax Consultancy)
(341 Points)
Replied 02 October 2009
Dear Bhabeshji,
the simplest way is that your mother should transfer the property to all of ur family members & then by a deed transfer those share of property in your name & then pay the amount to ur transferer family members
Thanks
Debashis
barkat ali
(auditors)
(32 Points)
Replied 06 November 2009
i have gifted a immovable property to my wife in the FY-2006-07, Asst-2007-08,i was getting rent from this property and i have declared the income in my IT returns till Fy-2005-06. i have a small business of cement bags ( sale & purchase).
now i have been called for scrunity by the ITO, the ITO has told me that the above property from which i was getting Rent, i can not gift the property to my wife & he want to add the rental income to my income instead of my wife for the year FY-2006-07 . now i want to know why i cannot transfer the property to my wife's name, in which IT section can i Tell him that the property can be transfered to my wife's name. i have filied the "IT" returns of my wife declaring the above rental income.
regards
barkat
Debashis Mandal
(Business & Tax Consultancy)
(341 Points)
Replied 08 November 2009
Respected Friend Mr. Barkat Ali,
after studing your point - it is absolutely clear that, there is no law which can make your gift to your spouse illegal, so from my point of view your gift to your wife is absolutely valid in law if proper documentation etc. has been done, but as per Income Tax act. 1961 clubbing provision the income which is generated from such assets of property is to be clubbed with your income & not with the income of your wife. so here is the point of argument with your ITO, but in no situation your ITO can say you that you cannot gift your assets to your wife.
Thanks
Debashis
Yeshwanth
(Chartered Accountant)
(145 Points)
Replied 12 November 2009
Hi friend Mr. Barkat Ali, If you transfer a property to your spouse unless than for adequate consideration or an agreement to live apart, the income from such property will be taxable only in the hands of the original owner. Refer section 27(i). If you can prove the assessing officer that you have transfered the house property to your wife for adequate consideration (Market value) or for an agreement to live apart, then it will not be taxable in your hands. Hope i am correct... Refer the above section once.
CAclubindia
